California Trusts Legal Questions

Your husband could have another attorney look at the trust, but it would probably be at his expense. Normally, the fees to assist with trust administration are lower than 2.7%. It's not that much less than what he would have made for doing a full probate, which is much more time-consuming. The trustees are not bound by that fee unless they signed a written engagement letter.... Read More

Most trusts do not forbid margin accounts or short selling; some even explicitly allow them. But trustees are obligated to behave as prudent investors. Unless that trustee had significant training and experience in that kind of high-risk investing, he was not behaving as a prudent investor. You can file a court action removing him as trustee and surcharging him for the losses. As with any court action, there is no guarantee of success. Unfortunately, almost all trusts permit one trustee to act unilaterally.This sort of thing is an example of why there should be only one trustee. The first-named trustee should be the most honest and dependable person, not the one "with experience investing."... Read More

Unless your cousin was historically very close to your father, this sounds like classic elder abuse. You need to go to court NOW and get an emergency temporary conservatorship and an elder abuse restraining order. If your father has capacity, he can change his documents back. If not, you will need to go to court again after he passes to have the trust amendments declared void.... Read More

Your case sounds strong. It may be a serious problem that you have waited six months to pursue this. He may well have expended your entire inheritance defending his own personal cases.  Trust litigation, even when there are strong grounds and witnesses available and willing to testify, costs tens of thousands of dollars, up into hundreds of thousands of dollars. The trustee is legally allowed to spend trust resources defending the trust and his position as trustee.  Do you know how much was in the estate when your mother died? Also, where in California are you located?... Read More

The trustee has a fiduciary duty to act in the best interests of the beneficiaries.  The trustee has a duty to render an accounting within sixty days of a written request.  The beneficiaries can sue the trustee for breach of fiduciary duty and ask the court to surcharge (make him pay back the money) the trustee.  Consult with an attorney for a full consultation.... Read More

If the trust is revocable, it can be revoked by the settlor.  If an attorney-in-fact has the authority under a power of attorney, then that agent can act for him. If the trust is irrevocable, it can be modified or revoked with the consent of the settlor and the beneficiaries.  This would require a court ruling. Call or email an attorney for a full consutlation.... Read More

I assume your husband lived in California when he passed away.  The answer depends on whether the property was separate property or quasi-community property.  As the suviving spouse, you are entitled to a portion of the separate property, and all quasi-community property.  Your case would have to be initiated in California, and any judgment brought to the other state for enforcement.  Does this sound complicated?  It is.  Contact an attorney for a full consultation.... Read More

You may have already gathered that this is a complex issue.  The characterization of separate or community property sounds simple, but is full of exceptions and can change with the circumstances.   The trustee only has power over the assets of the trust.  The trustee may not have power over funds not in the trust or over community property funds. The very best thing that you can do is to contact an attorney for a full consultation.... Read More